Rishi Sunak is said to be planning to slash income tax by 2p in the pound before the next election as he hopes to end his reputation as a 'high-tax' chancellor.
The Chancellor of the Exchequer, 41, is reportedly planning to cut income tax over the next three years, ahead of the next general election in 2024.
Sunak has told officials to draw up plans that will lower the tax burden while the Conservatives are also considering scrapping the 45p raise to income tax, according to The Times.
His preferred plan is understood to be cutting income tax, but ten proposals have been drawn up in total, which include cutting inheritance tax and charging households using green energy lower rates.
It comes after the chancellor urged voters to trust that he will deliver on his pledge to cut taxes before the next general election, as he said 'actions speak louder than words'.
Rishi Sunak is reportedly planning to cut income tax over the next three years, ahead of the next general election in 2024 as he hopes to end his reputation as a 'high-tax' chancellor
Mr Sunak hiked taxes at the Budget in October, with his changes set to push the tax burden to its highest level since Clement Attlee's post-war Labour government in the early 1950s.
But Sunak is determined to end his reputation as a 'high-tax, high-spend' chancellor, while Boris Johnson also has hopes to be a tax-cutting prime minister.
Amid reports of his income tax plans, Sunak is said to have told his colleagues that there will have to be tighter limits on public spending if the tax cuts can go ahead.
A Treasury source told The Times: 'But things are tight and in order to deliver on our promise to cut taxes, we need to be disciplined on spending.'
Another proposal could see Sunak cut the VAT headline rate of 20 per cent, while the Treasury is reportedly working on plans to increase the inheritance tax threshold.
The current threshold stands at £325,000, which increases if it involves properties left to children, with 22,800 estates paying 40 per cent on anything higher. The figure has not been adjusted since 2009.
Of the ten proposals that have been drawn up, it is understood that more detailed work is being carried out on three plans, focused on cutting VAT, income tax and inheritance tax.
A treasury source reportedly said that although plans could be disrupted by Covid and inflation, both Sunak and the Prime Minister want the cuts to go ahead.
Sunak's (pictured) preferred plan is understood to be cutting income tax, but ten proposals were drawn up, which include charging households using green energy lower rates
Earlier this week, the chancellor urged voters to trust that he will deliver on his pledge to cut taxes before the next general election.
He pointed to new changes made to the Universal Credit system as evidence that he wants to do more to help families.
He said that 'actions speak louder than words' as he hailed the move to slash the Universal Credit taper rate from 63p in the pound to 55p.
Sunak said that 'should give people
